POSTED BY April 28, 2014 7:16 pm COMMENTS (3)
ONDoes the interest amount charged vary from month to month? From my sbi max account Rs 40,00,000/ was issued to the builder as on 20 Dec 2013. After this no payment is give to the builder ( next payment is another 2 months away). When I checked the interest outgo, each month it varies! Why is it happening?
Is it calculation error?
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Dear Viren, aptly answered by you here and by Roshan in old Max Gain thread, hence not adding anything extra. 🙂
Thanks
Ashal
The interest is calculated on daily basis. Hence, if the number of days are less in a month, the interest charged would be less. Therefore, the interest charged in the month of february is less than the interest charged in month of january or march.
Next, since the interest charged was less in month of feb, the extra amount is routed to OD account. Due to this amount in OD account, interest charged is marginally less in month of march as compared to january.
This was my take. MaxGain expert will give his views shortly 🙂
Interest would be calculated on daily basis instead of monthly basis. So if the month has more days, the interest will be slightly higher than months which have less days